Assoc. Builders and Contractors v. NLRB, No. 15-50497 (5th Cir. 2016)Annotate this Case
ABC entities filed suit bringing a facial challenge to enjoin enforcement of a final rule issued by the Board that modifies procedures relating to union representation elections. The challenged rule amended the procedures for determining whether a majority of employees wish to be represented by a labor organization for purposes of collective bargaining. The court affirmed the judgment because the rule changes to the pre-election hearing did not exceed the bounds of the Board's statutory authority under the National Labor Relations Act (NLRA), 29 U.S.C. 151-169. The court also concluded that the expanded disclosure regime is rationally connected to the transformative changes in communications technology, and the Board’s rule was not arbitrary and capricious; because the Board considered the potential burdens on speech and afforded the regional director discretion in setting an election date, the ABC entities’ challenge to the timing rule fails; and because the Board acted rationally and in furtherance of its congressional mandate in adopting the rule, the ABC entities’ challenge to the rule as a whole fails. The court reiterated the high burden faced by the ABC entities in this facial challenge, and held that the challenged provisions of the Board’s rule neither exceed the scope of its authority under the NLRA nor are they arbitrary and capricious.